These stocks are leading the market’s comeback and analysts think they have more to go


For investors looking to run with the stock market’s recent rally, here are some winning names that may be poised to lead any rally in coming weeks. Stocks have kicked off November trading in the green, with each of the major averages coming off their best weeks of the year. The S & P 500 ended last week higher by 5.9% and the tech-heavy Nasdaq Composite jumped 6.6%, marking the best week for both since November 2022. The Dow Jones Industrial Average ended last week with its biggest weekly advance since October 2022. CNBC Pro looked for stocks in the S & P 500 that are up 10% or more off of their 52-week lows and have gained 10% or more in the past month. The names we found also have a consensus price target that calls for further appreciation of 20% or more from here on out. Here’s one way to play the market recovery, looking at momentum and sell-side price targets: Warner Bros. Discovery has the biggest potential upside — 55% — on the screen, looking at its consensus price target among analysts. The stock is up 14% in November, accounting for most of this year’s 20% advance. Wells Fargo reiterated an overweight rating on Warner Bros. in a Nov. 3 note, saying direct-to-consumer (DTC) trends this earnings season indicate a potential earnings inflection, fueling a long-term investment potential in several key media stocks. “We think WBD is the name investors want to own because it’s cheap, has strong FCF and appears open to industry change,” Wells Fargo analyst Steven Cahall wrote. “Its DTC biz is less of a drag, and if it can show a better outlook, we think it has the most rerating upside from ~6x EV/EBITDA.” Amazon also has plenty of runway. Not only has the dominant e-commerce platform gained more than 66% this year—it also stands to rise anogther 24.4% based on the Street’s consensus price target. Analysts are bullish on Amazon heading into the holiday shopping season. Amazon “appears to be a clear winner in holiday e-commerce sales,” driven by its unmatched assortment, fast delivery and broad consumer reach, Jefferies analyst Brent Thill wrote in a Sunday note. The firm estimates that e-commerce is set to accelerate even as retail sales slow down, according to its proprietary survey. UBS on Sunday raised its price target on Amazon by $2 to $180 and maintained a buy rating on the stock, noting the company — also known for its Amazon Web Services business — posted a strong quarter, led by margin improvement in North American and International retail, as well as acceleration in ad revenue, resulting in higher-than-expected fourth-quarter guidance. Another Wall Street favorite is NextEra Energy , which has potential upside of more than 26%. The electric power company reaffirmed its long-term distribution outlook in its recent quarterly report, which beat consensus expectations thanks, in part, on strength in its renewable energy projects. NextEra’s chief financial officer Terrell Kirk Crews said during the third-quarter earnings call that the Florida-based company expects its financial results to come in near or at the top of its adjusted earnings per share expectations from 2023 through 2026. Shares of NextEra are down nearly 30% for the year, but the beaten-down stock has recouped some of its losses this quarter, rising more than 3% since Sept. 30. Other companies leading the market’s comeback are packaging company Sealed Air , discount retailer Dollar Tree and newspaper publisher News Corp .



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